MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
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Tuesday, May 4, 2004 Putnam Reduces 529 Plan Charges Putnam Investments is extending the fee cuts it has made in its mutual fund business to its 529 college savings plan program. The Boston-based fund firm reduced the fees in charges in its mutual funds to below industry averages as part of its recent settlement with regulators. The cuts in account maintenance fees charged to 529 investors are an extension of those cuts. Putnam offers its plan through financial advisors and the program is sponsored by the Ohio Tuition Trust Authority ("OTTA"). The program currently claims 485,000 participants with assets of roughly $3 billion. Officials at Putnam said that the firm is voluntarily cutting the account maintenance fees and that the reductions were not requested by those running the Ohio CollegeAdvantage 529 college savings program that Putnam administers. "The enhanced transparency and fee reductions for Putnam CollegeAdvantage are an extension of the cost reductions and information disclosure policies we instituted for our mutual funds," said Elaine Sullivan, director of Educational Savings at Putnam Investments. "We want Putnam to be known as a firm that is committed to transparency and cost sensitivity across all of its investment offerings. Providing a vehicle that offers an affordable way to save for college is a priority for us." Putnam will also give the offering statement that it uses for the plan a mark over. Starting on May 24, the document will be revised with simplified language, tables and charts that are intended to clearly identify fees and expenses paid by shareholders, including the impact these fees have on a $1,000 investment. At the same time, Putnam is slicing the annual maintenance fee charged in the program by 40 percent to $15 from $25. According to Putnam officials, the reduction puts the cost of a $1,000 investment in CollegeAdvantage below the industry peer group average. The fund firm will continue to wave the fee for Ohio residents, non-Ohio residents with aggregate account balances of $25,000, investors making systematic investments of $50 or more, and certain corporate plans. To get out the word on the changes, Putnam has identified the month of May as "529 Awareness Month." In support of this Putnam will conduct conference calls with industry experts and highlight the many resources available to assist financial advisors and their clients to better understand the need to save for college and the options available to them. Printed from: MFWire.com/story.asp?s=7131 Copyright 2004, InvestmentWires, Inc. All Rights Reserved |